Gerard J. Pannekoek March 4, 2013

IP Market Problem IP Exchange Result

Incomplete or insufficient market information

Detailed prospectus, published pricing, consumption data reporting, bid/ask

TRANSPARENCY - enabling more accurate IP asset management and R&D decisions

Arbitrary or unilaterally determined IP value

Market-based pricing reflecting the value of a technology and increasing buy-side confidence

PRICE DISCOVERY – ensuring fair and reasonable pricing

Lack of standards, including course of dealing, contract terms, and pricing

Standardized tradable license rights accessible to all market participants

LEVEL PLAYING FIELD – accelerating technology transfer and innovation

Time and transaction cost inefficiencies associated with bilateral licensing

Central marketplace with market enhancing solutions, such as standard contracts, outsourced auditing, and alternative dispute resolution processes

EFFICIENCY - providing easy access, liquidity, and increasing transaction volume

4

USP X,XXX,137, et al General Description: USP X,XXX,137, et al Valve Insert

Patent(s) and Know How: USP X,XXX,137, et al and continuations, continuations-in-part and foreign counterparts

Fields of Use: All automotive and light truck engines

Unit Basis: 1 ULR contract allows the manufacture / sale of 1 automotive or light truck engine

Total Offered Quantity: 50 million ULR contracts offered in 100-unit lots

Term: Until consumed

Market Opening: Initial Sale closing no later than January 24, 20XX

Restrictions: 80% of Purchased ULR contracts must be from Operational Users in Tranche A

Encumbrances: To review prior licensing history see Offering Memorandum

Amnesty: 10 for 1 available until June 24, 20XX

Tranche

Priced at

U137A: 10 million ULR contracts $0.70 per ULR contract

U137B: 10 million ULR contracts $0.85 per ULR contract

U137C: 30 million ULR contracts $1.00 per ULR contract

Follow-on Offerings Through Term (2017)

10 Million ULR contracts each

+/- 1% around the moving average of the settlement prices of the last 30 trading days

1. Unitizing the Patent (Creating ULR) 2. Initial Offering of ULRs 3. Secondary Market

IP Owner

Exclusive License

Issuer (IPXI Special

Purpose Vehicle)

Liquidity Providers

Operational User

80% of Issuers Profits Interest $$$

ULR contracts

ULR contracts

$$$ IPXI Trading Platform

Buy and sell orders between Operational User and Liquidity Providers are matched via IPXI trading platform

IPXI Selection

Committee

Reviews and approves ULRs for Offering on the Exchange

Structured  

Finance  

Equity  

Portfolio  

Management  

Options  

Trading  

IPXI  

Venture Capital Private Equity

Trading Firms

Operational Users

Investment Banks

Commercial Banks

LIQUIDITY PROVIDERS

Disclaimer: The concepts covered by this presentation and the information included herein are for discussion purposes only and are not intended to be all-inclusive on the topic of IPXI or related parties. Many of the concepts are illustrative only and do not necessarily represent final IPXI functions and processes. Additionally all of the information contained herein is confidential and the recipient acknowledges that unauthorized disclosure or use of such confidential information, will cause the Company irreparable harm. Therefore recipient shall maintain Confidential Information in strict confidence at all times without the Company’s written consent.

Intellectual Property Exchange International, Inc.